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INTRODUCTION TO MANUFACTURING IN AX Gilbert Garcia Director US Dynamics Manufacturing

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Page 1: 2 intro to manufacturing

INTRODUCTION TOMANUFACTURING IN AX

Gilbert Garcia

Director US Dynamics

Manufacturing

Page 2: 2 intro to manufacturing

AGENDA

Dynamics AX Product

for Mfg.

MicrosoftIndustry&

Vertical Focus

Market Presence&

Competitors

Customer Evidence

Vertical Solutions

Q&A

Page 3: 2 intro to manufacturing

INDUSTRY FOCUS

ChemicalAutomotiveIEMA&DHigh TechLife Sciences

MANUFACTURING

Specialty RetailHospitality & Travel

RETAIL

DISTRIBUTION

GovernmentPublic SectorHealth & Education

PUBLIC SECTOR

CPGIndustrialTransportation

Services

AECMedia & EntertainmentProfessional Mfg.

BankingCapital MarketsInsurance

FINANCIAL Mfg.

$

Page 4: 2 intro to manufacturing

DISCRETE MANUFACTURING VERTICALS

• Automotive Components and Parts

• Aftermarket Parts• Shipping and Railroad Vehicles • Recreational Vehicles

• Audio and Video Equipment• Communications

Equipment• Computer Equipment Mfg.

• Special and Large Machinery• Oil, Gas, & Mining Machinery• Commercial Machinery• High Tech Machinery• Refrigeration and Air

Handling• Misc. Industrial Machinery• Metal Working Machinery

Industrial Equipment

Ranges from Make to Stock thru Engineer to Order

MICROSOFT CONFIDENTIAL

AutomotiveHigh Tech

Page 5: 2 intro to manufacturing

PROCESS MANUFACTURING VERTICALS

• Blast Furnace and Steel Products

• Iron and Steel Foundry• Ferrous and Non Ferrous Metals• NF Drawing and Rolling• Non Ferrous Casting• Foundries

• Pharmaceuticals• Bio Technology• Medical Devices*• Nutraceutical & Vitamins

• Industrial Inorganic• Industrial Organic• Plastics, Materials,

Synthetics• Soaps, Cleaners, Toilet Goods• Agricultural Chemicals• Misc. Chemical Products

-sealants-printing ink-carbon black-chemical preparations

Batch Chemicals Primary Metals Life Sciences

Batch Chemical, Primary Metals, Life Sciences

MICROSOFT CONFIDENTIAL

*Discrete Mfg. pr Mixed Mode

Page 7: 2 intro to manufacturing

Market Leadership

Page 8: 2 intro to manufacturing

Microsoft Confidential 8

Microsoft Dynamics AX Microsoft Dynamics AX is Microsoft's ERP solution aimed at the core and upper

midmarket The role-tailored client can make the adoption of AX easier Industry-strength product that can serve multinational companies in the core and

the upper midmarket out of the box Its ability to execute is proven by a long track record and above-average growth

rates in the midmarket, its intuitive and easy-to-learn and use Microsoft Office-like UI, and by its functionality, which is a healthy mix of strong out-of-the-box functionality for the selected industries, combined with industry- and customer-specific functionality built by or together with partners.

Gartner believes that Dynamics AX is best-suited for core midmarket companies in discrete and process manufacturing and distribution industries and in retail, with a presence in multiple countries.

Lean manufacturing principles are one example of advanced manufacturing-oriented functionality, but it is currently only available in the U.S., Canada and the U.K.

Microsoft has not published a road map for a multitenant SaaS ERP. The Microsoft Partner Network (MPN) program is a multi-year initiative to enhance

the competencies and quality of sales and implementation partners, and to increase their global reach by collaboration and consolidation. However, its success will largely depend on the ability of the channel to transform their business. Customers need to check for qualifications and certifications to make sure that their partner is sufficiently equipped for the project at hand

Page 9: 2 intro to manufacturing

Microsoft Confidential 9

SAP Business All-in-One SAP Business All-in-One applications are prepackaged, industry-specific solutions that use SAP

Business Suite functionality to support midmarket businesses SAP's fast-start program aims at helping lower midsize enterprises (i.e., those with up to 499

employees) to make the implementation easier and has proved its value in the early phases of an implementation project, e.g., system configuration, personalized demo and easier installation.

BusinessObjects Edge BI offers integrated analytics and dashboards throughout the application. Four dashboards were delivered in 1Q10, and eight more are planned until the end of 2010. However, customers might have to buy additional products to achieve this.

SAP Business All-in-One proves to have a higher TCO for the same number of users, increased end-user complexity and less flexibility to adapt the solution to changing business requirements

Additional changes, enhancements and customizations, beyond simple configuration and "turning on" additional functions, are possible, but users doing so have to cope with the full complexity of the SAP Business Suite

The facelift of SAP Business All-in-One's UI does not completely remove the issues that customers had with the overall complexity of the product. Also, the integration with productivity tools like Microsoft Office beyond what Duet offers is yet to be completed.

the users that Gartner spoke with did not find all the reports that they needed, and found that even simple changes required expensive programming in ABAP.

Customers need to be aware that the fast-start program often only yields the first part of an implementation, and that significant additional effort might be needed after the first go-live to complete and optimize the implementation

The functional richness of Business All-in-One can help to make customizations less likely, but it also makes customizations — where needed — difficult to build and to maintain, especially through upgrades

users have found their project and maintenance costs exceeding their expectations, especially when the functionality scope extended beyond the initial estimate

Page 10: 2 intro to manufacturing

Microsoft Confidential 10

Oracle E-Business Suite Oracle EBS R12.1 has been enhanced throughout the solution, with 16 modules

("products") added (e.g., service parts planning, manufacturing operations center, supplier ship and debit, etc.) and enhancements made for a number of industries, including engineering and construction, high tech and wholesale distribution. However, none of these product enhancements have been designed specifically for midmarket companies

Oracle Business Accelerators (OBAs) in order to shorten deployments in midmarket organizations. OBAs are industry solutions tailored to specific business processes that have been defined to provide a base solution

Its intrinsic complexity, lack of a modern, easy-to-use interface and requirement for more skilled IT resources, which can result in higher operating costs, especially in organizations with less than 100 users

The implementation of the various modules can sometimes exceed the resources and capabilities of midmarket companies, without leveraging significant assistance from Oracle consulting partners.

Oracle Fusion Applications (see "Oracle Fusion Applications: A Mystery Resolved"). However, because the initial release of Oracle Fusion Applications is not specifically designed for the midmarket and will not include deep industry-specific functionality.

the personalization of screens typically requires a person with IT skills. the ratio between IT staff needed to operate the system and business end users

range from 1:25 and better, but can be up to 1:10, especially in accounts with less than 70 users

Customers have found EBS licensing to be expensive, but occasionally could negotiate special deals based on various conditions. Gartner is aware of high discounts given on list prices, but the additional products that Oracle offers around core ERP are very pricey and often too expensive for midmarket companies

Page 11: 2 intro to manufacturing

Microsoft Confidential 11

Oracle JD Edwards EnterpriseOne

Originally built on IBM technology, it is today available on a variety of platforms, including Microsoft Windows

A range of industry-specific functionality is built into the system, especially for asset-intensive and complex manufacturing

EnterpriseOne offers deep, native industry functionality for engineering and construction, CPG (especially in agriculture and consumables), general manufacturing and distribution, as well as for asset-intensive industries like oil and gas and real estate management.

lG-Log for transportation management and Demantra for demand planning and forecasting and CRM on demand

Gartner believes that EnterpriseOne is best-suited for core midmarket companies that operate in multiple countries and in asset-intensive industries such as industrial manufacturing.

the UI is not yet as flexible and intuitive as some competing solutions. Gartner has observed that Oracle's sales organization tends to promote EBS over

EnterpriseOne The reporting capabilities were continually mentioned as an issue by customers Data export to Microsoft Excel is supported, but writing data from Excel to JD

Edwards is not possible without additional effort. EnterpriseOne will not receive fundamental transformations such as the move to a

full SOA or availability as a multitenant SaaS ERP, which are the focus of Oracle Fusion Applications.

The Web service interfaces provided are not yet covering the complete application

Page 12: 2 intro to manufacturing

Microsoft Confidential 12

Epicor 9 Epicor 9 targets midsize to large-scale make-to-order and mixed-mode

manufacturing companies, while additionally offering a range of SCM and distribution capabilities

The strength of this architecture is visible in its very high flexibility, where users with little IT literacy can enhance and modify the solution, and any adaptations are unaffected by upgrading the underlying application code

Epicor 9, in the meantime, has proved its strong execution in the midmarket, particularly in "to order" and mixed-mode environments.

Epicor 9 offers more than 100 predefined, role-specific dashboards and key performance indicators (KPIs) that are displayed and updated in the context of the application

Instead of offering a stand-alone CRM solution, Epicor's CRM functionality (originally based on its Clientele product) is embedded throughout the product, with concepts such as a "universal person."

The implementation is based on prepackaged best-practice process templates, and a shared benefits program allows users to share both the risks of cost overrun and the rewards of a successful implementation

Consulting resources were sometimes found to be scarce. The model-driven architecture of Epicor 9 can cause system performance to be a

challenge The code quality of the initial versions of Epicor 9 has created issues, but customers

have reported improvements with version 9.05 A higher focus on Epicor's industry strategy will be done through "Epicor for your

industry," but until completion, customers need to check if all their industry-specific requirements are fully supported

Page 13: 2 intro to manufacturing

Microsoft Confidential 13

Infor ERP LN Infor ERP LN (which actually is version VI of the system known for years as Baan

ERP) continues to be a robust solution for bigger midmarket customers. It is well-suited for project-based and complex manufacturing, but also for distribution customers.

Gartner believes that ERP LN is best-suited for upper-midmarket companies in complex manufacturing industries such as industrial engineering and manufacturing, aerospace and defense, as well as high tech and electronics, and automotive. The majority of its presence continues to be in EMEA

The acquisition of Baan by Infor in 2006 has improved its global presence, but no major transformational development has happened since then .

Infor ERP LN is positioned in the Niche Players quadrant due to the following factors: Its broad and deep functionality creates high complexity and costly implementation

The large number of ERP solutions in Infor's portfolio and its financial situation will make it difficult to dedicate the R&D resources that will be needed to fundamentally modernize LN and to execute a next-generation vision.

Formatting of printed output and reports has proven to be inflexible. Infor plans to add more powerful third-party reporting tools, but customers missed usable standard reports and had to invest a lot to build them

Reference customers that Gartner spoke with found that certain industry-specific packages are not being moved forward

Reference customers have described challenges obtaining consulting and professional service resources

We believe that Infor currently carries at least $4.5 billion in debt .This is a highly leveraged company by enterprise application software vendor standards.

Page 14: 2 intro to manufacturing

Microsoft Confidential 14

Infor ERP SyteLine Support for mixed-mode manufacturers in the engineer-to-order,

configure-to-order, highly repetitive and service-based markets. It does not have a distinct industry-orientation.

It is built on the Microsoft .NET technology platform and supports managing multisite global organizations through a replication mechanism, where each site or unit uses a dedicated instance which exchanges data with other instances.

SyteLine offers an integrated advanced planning and scheduling (APS) module, and its product configurator, although built by a third-party provider, has proved to be strong.

SyteLine does not support running multiple legal entities or business units in one single instance.

Like with ERP LN, Gartner has not seen any evidence of new application modules delivered under the Infor Open SOA strategy

Rather than relying on the Business Edition of Infor CRM (based on Epiphany), an internal CRM module was built in SyteLine, which limits the ability to benefit from investments into Infor's main CRM solution. Also, Infor recently announced that it will expand its CRM offering with a solution built on Microsoft Dynamics CRM to try and address this caution.

Gartner believes that SyteLine is best-suited for lower and core midmarket customers in a variety of industries

Page 15: 2 intro to manufacturing

DYNAMICS AX MFG. SOLUTION FOOTPRINT

Test/Test PlansBatch Attributes

Lot GenealogyPotencyLogical

DispositionSampling Policies

Project Accounting HR/ Payroll

GL/AR/AP/FA & Procurement Compliance

Financial Control

Mfg. Execution & Reporting

Lean KanbanScheduling

Shop Floor Control

Work /Batch Orders

Planning and Scheduling

Bid /QuoteOpportunity Management

Trading Partners

Order ManagementForecasting

BI & ReportingWMSPerformance

ManagementProcess Mfg.

InterplantMulti-Site

MSDSCompliance

Microsoft Office

Microsoft SharePoint

Microsoft SQL Server

Microsoft Lync

Microsoft Project

Microsoft Fast

Interoperability Office 365

MICROSOFT CONFIDENTIAL

Core Four ERP

Page 16: 2 intro to manufacturing

DYNAMICS AX CORE CAPABILITIES

Supplier Relationship Mgt.

Purchasing Contracts

Sourcing

Requisitions

Purchase Order Management

Projects

Project Billing

Project Resource Management

Project Management & Collaboration

Project Portfolio Analysis

Project Contracts

Grants

Project Accounting & Costing

Financials

General Ledger

Accounts Payable

Accounts Receivable

Commitment Accounting

Travel & Expense

Fixed Assets

Credit

Collections

Invoicing & Billing

Cost Accounting & Financial Control

Corp Performance Mgt.

Budgeting

Consolidation

Statutory & Financial Reporting

Customer Relations

Pricing & Discounting

Sales

Customer Support

Service

Governance-Risk-Compliance

Compliance & Internal ControlsEnvironmental Sustainability

Human Resources

Workforce Management

Compensation & Incentive Management

Time & Attendance

Performance Management

Talent Management

Recruiting

Supply Chain Mgt.

Quality Management

Returns

Warehouse Management

Sales Order Management

Supply Chain Planning

US Payroll

Payroll Accounting

Payroll Administration

Payroll Tax

Inventory

Item Replenishment

Inventory Control

Inventory Costing

Batch & Lot Control

Page 17: 2 intro to manufacturing

MANUFACTURING COMPONENTS

IEM Options (ISV)

Advanced Project Mgt.

Advanced Bid Quote

Engineering Management

Graphical Project Planning

Core Project Management

Project Billing

Project Resource Management

Project Management & Collaboration

Project Portfolio Analysis

Project Contracts

Grants

Project Accounting & Costing

Manufacturing Execution

Production Orders

Batch Orders

Lean Kanban/ Schedules

Job Scheduling

Basic Sequencing

Pick Lists

RCCP

Shop Floor Control

Shop Floor Packets

Finite/Infinite Scheduling

Planning/Scheduling.

Material Requirements

Master Production Schedule

Capacity Requirements

Sampling Plans

Test Plans- Qual./Quant..

Logical Disposition

CAPA (basic)

Governance-Risk-Compliance

MSDS Management

Environmental Sustainability

Automotive Options (ISV)

Automotive EDI

Automotive Quality

ILVS- Vehicle Sequencing

Contracts/SUMs/CUMs

Automotive Labeling

Release Accounting

Plant Maintenance (ISV).

Fleet Maintenance

Work Order Management

Costing/Analytics

Asset Tree Management

Preventive Maintenance

Demand Management

Forecasting

Interplant

Demand Planning

Inventory Control

Item Replenishment Policy

Cycle Counting & Control

Inventory Costing & Control

Batch & Serial # Control

Core Quality Control

ISV Solution

Page 18: 2 intro to manufacturing

Manufacturing Industries Ecosystem (one example)

Lean

Page 19: 2 intro to manufacturing

BLUESTAR PLM FOR AX

Microsoft’s PLM Partners

Page 20: 2 intro to manufacturing

VERTICAL SOLUTION MAPS

Page 21: 2 intro to manufacturing

ISV Solution

Page 22: 2 intro to manufacturing

AUTOMOTIVE MANUFACTURING

VENDORREBATE

PRICE

CONFIGURATIONMANAGEMENT

RAWMATERIALSPROCUREMENT

CONTRACTMANAGEMENT

LEAN

SCHEDULING

BILL OFMATERIALS

BOM

MA

STER

PLA

NN

ING

INV

EN

TO

RY

TRANSFERORDERS

ACCOUNTSRECEIVABLES

AR

PURCHASEORDERS

PO

ACCOUNTSPAYABLES

AP

SALESORDERS

PROJECTS

FORECASTING

WAREHOUSEMANAGEMENT

NETREQUIREMENTS

PRODUCTIONORDERS

CREDITMANAGEMENT

CUSTOMERREBATE

IN-LINEVEHICLESEQUENCING

LANDEDCOSTS

EN

GIN

EER

ING

CH

AN

GE

AU

TO

ED

IO

DETTE, V

DA

LABELING

PLM Int.

QUALITY

REPETITIVEORDERS

RELEASEACCOUNTING

MES

Page 23: 2 intro to manufacturing

LIFE SCIENCES SOLUTION MAP

VENDORREBATE

SHAREPOINTDOCUMENT MANAGEMENT

MASTER FORMULAMANAGEMENT

AVL- RAWMATERIALSPROCUREMENT

CONTRACTMANAGEMENT

LEAN

SCHEDULING

BOM/FORMULA

BOM

MA

STER

PLA

NN

ING

PR

OC

ESS

NV

EN

TO

RY

TRANSFERORDERS

ACCOUNTSRECEIVABLES

AR

PURCHASEORDERS

PO

ACCOUNTSPAYABLES

AP

SALESORDERS

PROJECTS

DEMANDPLANNING

WAREHOUSEMANAGEMENT

NETREQUIREMENTS

PRODUCTIONORDERS

CREDITMANAGEMENT

CUSTOMERREBATES

FDAVALIDATION

DISPENSING

AD

AV

NC

ED

Q

UA

LIT

Y

ELEC

TR

ON

CBATC

H

REC

OR

DS

LABELING

PROCESS PLM

QUALITY

REPETITIVEORDERS

LIMS

MES

Page 24: 2 intro to manufacturing

Now in R2

Page 25: 2 intro to manufacturing

IEM VITU PILOT PROGRAMGilbert Garcia

Director US Dynamics

Manufacturing

Page 26: 2 intro to manufacturing

AX Revenue Goals – On Plan

P6 FY13* EA/EAS deals only record year one revenue. FY13 Goal YTD Achievement All Industry VITU

Program

Mfg. Industries AX 97% 90%

Mfg. Industries CRM 107% 90%

Microsoft Confidential – Partner Internal Use Only

FY13 Goal YTD Achievement Rank in Program

IEM VITU 176% 1st Place

Page 27: 2 intro to manufacturing

MANUFACTURING PRODUCT (DYNAMICS AX )

Gilbert Garcia

Director US Dynamics

Manufacturing

Page 28: 2 intro to manufacturing

28

MICROSOFT OPERATIONS SOLUTIONS

Meet your business objectives with a comprehensive solution

Sure Step Methodology RapidStartInformationSource

Customer Management BI/Analytics

Knowledge Management

Employee Productivity

Data Storage Integration

Manufacturing Core Solution:

Microsoft Dynamics AX

Complementary Solutions

Methodology& Tools

Delivery Expertise

Microsoft Dynamics AX Technology

Microsoft Stack

Integration

Integrated Developme

nt Environmen

tSecurity

FrameworkInteroperab

ilityFlexible

DeploymentWorkflow

Framework

Model-Driven, Layered

Architecture

System ofRecord

Systems ofInnovation

Systems ofDifferentiation

Administrative Workloads

Manufacturing Workloads

Financials Hire-to-Retire

Supply Chain

VisibilityProduct

Engineering

Manufacturing

OperationsManagemen

t

Supply Chain

Planning

Sales Order Managemen

t

Warehouse and

Distribution

Size

= SAP/Oracle = Dynamics AX = PLM

Page 29: 2 intro to manufacturing

29

MICROSOFT DYNAMICS AX FOR MANUFACTURING

An end-to-end operation solution for manufacturing companies

Product Design - BOMs, Formulation and Configuration, Supplier Relationship Management – Global and Multi-

CurrencyManufacturing/ Supply Chain Management – Quality,

Costs, Skills Logistics Financial Management – Business Intelligence

Order Management – Customer Relationship Management

Supply Chain Demand Chain

Suppliers Customers

ManufactureProcure Deliver

Plan Supply Distribute SellManufacture

Product Engineering

Supply Chain Planning

Sales Order Management

Supply Chain Visibility

Manufacturing Operations

Management

Warehouse & Distribution

Manufacturing Operations Solution

Process

Lean

Discrete

Composable

Collaborative

Mix-mode production

Page 30: 2 intro to manufacturing

ROLE CENTERS: SOLUTIONS FOR YOUR PEOPLE

Our version of “Best Practices”

Page 31: 2 intro to manufacturing

SALES MANAGEMENT

Page 32: 2 intro to manufacturing

32

SALES ORDER MANAGEMENT

Develop a streamlined order-taking and fulfillment process

Multi-Channel

Open new business

opportunities

Invoicing and

Collection Manageme

nt

Get paid faster and manage litigation

Quote-to-Sales Order

Sales tools for improved customer

interaction

Collaboration

Drive customer

loyalty with improved services

Manage Customer Relationsh

ip

Drive your sales

and marketing activities

Key Benefits

Track results through KPIs and BI

Connect to web store, marketplaces, social media

Customer Portal and Online Services for improved service

Empower users with efficient sales order entry

Page 33: 2 intro to manufacturing

33

AVAILABLE TO PROMISE AND ….CAPABLE TO PROMISE

ATP looks at materials only, CTP adds capacity view

Page 34: 2 intro to manufacturing

OPERATIONS

Page 35: 2 intro to manufacturing

35

ITEM/PRODUCT PORTFOLIO MANAGEMENT

Conceive, maintain & release products according to company policy Manage centrally your portfolio of products.

Manage items & services.

Define product hierarchies.

Basics: name, product group, weight, dimensions, handling & packaging, etc.

Manage variants (color, sizes, etc.)

Attributes & hierarchies classification.

Inventory (batch, lots, catch weight, etc.)

Costing & financial dimensions.

Manage Good Manufacturing Practices (GMP) for CFR 21 Part 11 compliance.

Page 36: 2 intro to manufacturing

36

Consumption ledger• Material Cost• Route Cost

Costing

Journals• Quantities• Hours used

Finished

Shop Floor Control

• Finished

Inventory papers• Pick list

Start

Production papers• Operation/Job cards• Shop Floor Control• Route cards

Release

Benefits:

•Material control

• Optimal production process

• Visibility of the total process, which leads to reduction of costs

Production/Batch Orders

Gantt Chart/Kanban

Job Scheduling

Planning on date & time levels

Operation Schedu-ling

Expected• Material Cost • Route Cost

Cost Estimation

Individually created based on information from:

• BOM/Formula• Production route

Planned orders: • Master scheduling• Sales order

Created

TYPICAL PRODUCTION CYCLE

AX provides transparency and visibility

Page 37: 2 intro to manufacturing

LEAN

Page 38: 2 intro to manufacturing

38

Lean Accounting

Value Stream as Financial Dimension

Planning/Scheduling

LOS (Lean Order

Schedules)

Heijunka Board

Sales Pull Signals (Call Off)

Purchase Kanban

Kanban and Pull-Based Execution

SubcontractingKanban

Barcodes

Organization

Cells Kanban

Sales Schedules

Transfer Kanban

Kanban Board

Kanban Inventory Overview

Takt Meter

Cost Substitution

Item

Lean Manufacturing Functionality

Integrated Sales, Purchasing, Financial, Collaboration, and Business Intelligence

LEAN MANUFACTURING FOR DYNAMICS AX

manufacturing, sales-driven scheduling, kanban and inventory management, and lean accounting

Page 39: 2 intro to manufacturing

39

SERVICE DELIVERY LIFECYCLE

Great for Project Managed Companies

Sales and Marketing

Project Managemen

t

Resource Managemen

t

Time Sheets

Expenses

Project Accounting

Invoicing

Page 40: 2 intro to manufacturing

40

PROJECT ACCOUNTING

Manage your project-tracking profitability

Monitor profitability with revenue recognition.

Control project costs and reporting.

Manage costs and planning using project hierarchies.

Set up and manage project quotations effectively.

Integrates in real-time with supply chain and financial management processes.

Page 41: 2 intro to manufacturing

41

COSTING METHODS

Mixed Mode Costing

Standard

Lifo

Lifo Date

Fifo

FeFo (reservations)

Weighted Average

Weighted Average Date

Actual

How are we different better than the competition?

MIXED MODE COSTING!

Page 42: 2 intro to manufacturing

SUPPLY CHAIN PLANNING

Page 43: 2 intro to manufacturing

43

SUPPLY CHAIN PLANNING (WITHIN THE 4 WALLS)

Set company policies and collaborate with your vendors

Facilitate employee ordering experience

Efficient procurement process for direct and indirect goods

Enforce policy control

Empower vendor interactionKey Benefits

Procurement Budget

Build and maintain your budgets with

Excel

Spend Analytics

Accessible KPIs

and Business Intelligence

Supplier Manageme

nt and Sourcing

Onboard vendors and send RFPs

online

Procurement

Catalog-based procurement

model

Material Requireme

nt Planning

Manage supply & demand

across supply chain

Technology

Administrative Workloads

Manufacturing Workloads

Page 44: 2 intro to manufacturing

44

Master Planning

Forecast schedule

Master schedule

Planned orders

Forecasting– Items,customer,vendors

– Forecast models

– Forecast method:– Manual, period, key

– Forecast plans:– General settings– Time fences– Safety margins

Master plans– General settings include :

– On-hand inventory– Inv. transactions– Quotations– Forecast model

– Time fences– Safety margins

Coverage groups:– General settings– Action message– Futures message

Purchase order

Lead time

Delivery date

Production order

Op. schedule

Job schedule

Transfer order

From Warehouse

To Warehouse

Master Planning

MASTER PRODUCTION SCHEDULING (MPS)

Mixed Mode MPS

Kanban

Process

Transfer

Page 45: 2 intro to manufacturing

45

SCHEDULING EXECUTION

Understand when to recommend advanced planning and scheduling tools

Route and Job Scheduling

Finite/Infinite Scheduling (Forward, Backward,)

Material

Capacity

Property

Capable and ATP Gantt Charts Scheduling Board (Lean)

MRP/MPS What if

En Masse Grouping and

Sequencing Select Capacity Loading and

Planning Multiple Ways to Issue

Material Shop Floor Control

Integration (MES)

Page 46: 2 intro to manufacturing

LOGISTICS

Page 47: 2 intro to manufacturing

47

WAREHOUSE AND DISTRIBUTION MANAGEMENT/EXECUTION

End-to-end visibility throughout the supply chain

Plan and schedule

Balance your need in

resources and inventory

Inbound logistics

Optimize your receipt and put-away processes

Quality manageme

nt

Make customer satisfaction a

priority

Outbound logistics

Efficient customer

deliveries and distribution

Returns

Manage return process

and track issues

Empower users with role-based access to information

Streamline end-to-end supply chain processes

Manage supply chain across geographies and time zones

Manage product compliance and traceabilityKey benefits

Know when to recommend WMS optimization

Page 48: 2 intro to manufacturing

48

WMS IN DYNAMICS AX

Warehouse Management System•Directed Picking, Packing, Put away•Random or Fixed Locations•Tightly integrated with:

Purchase ordersSales ordersProduction ordersInventory Management

Cycle Counting/Tag CountsMulti-site warehouse managementInventory management with dimensionsFlexible technology (e.g. use of bar codes)

Page 49: 2 intro to manufacturing

49

FINANCIALS

Make decisions based on facts and comply

Reporting and consolidation

Build and maintain your budgets with Microsoft Excel

Budget

Automate your acquire-to-retire process

Fixed Assets

Efficiently manage customer invoices and collections

Accounts Receivable

Analyze your finances the way you want

General Ledger

Manage your vendor relations and disbursements

Accounts Payable

Distribute costs and analyze profitability

Cost Accounting

Manageyour project tracking profitability

Project Accounting

Comply with local regulationsKey Benefits

Enable users to make decisions based on facts

Comply with global regulations (IFRS, SOX)

Powerful account structure for deeper analysis

Page 50: 2 intro to manufacturing

DYNAMICS DISCRETE CUSTOMERS

Page 51: 2 intro to manufacturing

“We want to be in a position to win. We're investing in people and technology, and we need to improve our processes. I really think Microsoft Dynamics AX is going to help the team in this challenge for 2014.”

Graeme Hackland, CIO, Lotus F1 Team

RACING TEAM PLANS PROCESS TRANSFORMATION WITH INTEGRATED ENTERPRISE RESOURCE PLANNING

Challenge Solution Expectations

View the Case Study

The team chose Microsoft Dynamics AX to collect live, accurate information, make informed decisions, compete for funding, and – ultimately – build a faster car.

Improve manufacturing productivity

Avoid wasted resources

Deliver information quickly to remote employees

Interoperate with its HR environment to manage the skill sets it needs for new processes

Lotus F1 Team wants to win the 2014 FIA Formula 1 auto racing world championship. To that end, it needs to transform many of its business and manufacturing processes.

Page 52: 2 intro to manufacturing

“We want to take this company to $200, $300, $400 million a year in revenue, and to do that, we need a very good ERP solution. With Microsoft Dynamics AX, we have that.”

Raymond De Hont, Chairman, CEO, and President, Met-Pro

MANUFACTURER TAKES CONTROL OF OPERATIONS, IMPROVES INSIGHT BY USING ERP SOLUTION

Met-Pro relied on a 20-year-old enterprise resource planning (ERP) system and, consequently, resorted to many manual processes because the solution lacked integration throughout the company’s entire operation.

Business Challenge Solution Results/

Benefits Met-Pro

engaged a Microsoft Gold Certified Partner and deployed Microsoft Dynamics AX and a range of select add-in solutions.

Insight into business

Control over operations

Contractual compliance

Flexible platform for ongoing growth and change

View the Case Study

Page 53: 2 intro to manufacturing

“If you have a great idea here on the production line, we're able to take those ideas and incorporate them into new processes very quickly. Those great ideas turn into better results for our customers.”

Paul Sems, Director, Information Technology, Vitamix Corporation

LEADING MANUFACTURER OF BLENDING EQUIPMENT ADOPTS MICROSOFT DYNAMICS SOLUTIONS

Company Overview Solution Results

View the Case Study

Microsoft Dynamics AX

Microsoft Dynamics CRM

Up-to-date information reflects the company’s business situation.

Interoperability with Microsoft Office makes it easy to train employees.

Time taken to do one return sales order went from 3.5 minutes to 45 seconds.

Vitamix Corporation is a world leader in high-performance blending equipment. Its business has doubled in the past three years.

Page 54: 2 intro to manufacturing

“We concluded that Microsoft Dynamics AX was the only true lean ERP solution available on the market.”

John Ramage, IT Manager, Talley Group

HEALTHCARE MANUFACTURER REDUCES WASTE AND IMPROVES DATA VISIBILITY WITH ERP SYSTEM

Challenge Solution Benefits

View the Case Study

Microsoft Dynamics AX

Accessible information

Streamlined manufacturing process

Smarter decision making

Smoother operations

Enhanced customer Mfg.

Talley Group needed to identify and reduce waste in its manufacturing process.

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“With Microsoft Dynamics AX, we can better devise and run extended processes, manage more-than-doubled data volumes, and meet business challenges with great agility.”

Enrico Cafiero, Head of Business Information Systems and ERP Program

Manager, Piaggio Aero Industries

AERONAUTICS LEADER DEPLOYS ERP SOLUTION TO STREAMLINE, CONTROL, AND GROW ITS BUSINESS

Piaggio Aero Industries sought to streamline its business processes, more closely connect locations and business groups, and gain better control over business growth and performance.

Business Challenge Solution Results/

BenefitsPiaggio Aero deployed Microsoft Dynamics AX in several business units, including the company’s finance management, and integrated the solution with Microsoft Project Server and Microsoft SharePoint Server.

Generate cost savings through streamlining and control

Enable business insight and dependable regulatory compliance

Gain higher returns from investments in skills and training

Rebuild business processes for growth and best customer Mfg.

View the Case Study

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“Month-end reports that used to take two weeks now take just over a day. This has significantly enhanced visibility and sped up decision-making, especially when it directly affects the cash flow.”

Senaka Attygalle, General Manager - IT, Jinasena (Pvt) Ltd

LEADING WATER PUMP MANUFACTURER IN SRI LANKA IMPROVES CASH FLOW MANAGEMENT WITH ENHANCED VISIBILITY

DEPLOYMENT CASE STUDY

Challenge Solution Benefits

View the Case Study

Designed from the ground up for the manufacturing industry, the easy customizability of Microsoft Dynamics AX allowed Jinasena to incorporate specific import management requirements into the system to align with local standards.

Enhanced inventory management eliminates labor-intensive annual stock-take

Streamlined processes cut inventory holding costs by 25 percent

Better control over supply chain increases negotiation power

The company needed to have accurate, real-time business information to support business decisions. It also needed to streamline processes to improve productivity and reduce costs, enhance its inventory management processes, and speed up financial reporting.

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“I get a lot of satisfaction out of Microsoft Dynamics AX 2012. With commitment from Microsoft to enhance the solution, it will always be on the forefront of technology—and we will be there with it.”

Bob Jablonski, Operations Manager, Hydra-Power Systems

INDUSTRIAL EQUIPMENT COMPANY ADVANCES ITS BUSINESS ON INNOVATIVE ERP SOLUTION

Hydra-Power Systems wanted to increase its ability to serve customers, help employees be more productive, streamline key business processes, and gain greater returns from technology investments.

Business Challenge Solution Results/

Benefits Through the

Microsoft Technology Adoption Program, Hydra-Power implemented Microsoft Dynamics AX 2012 in integration with other Microsoft technologies and business-specific software tools.

Enable decision makers to take control

Run a scalable solution by using only company resources

Enhance the quality and competitiveness of customer Mfg.

Help employees boost their effectiveness

View the Case Study

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“With the help of Microsoft Dynamics AX 2012, we can follow our customers across the globe in the most efficient way possible.”

Daniele Ferrari, CEO, Dellas

LEADING MANUFACTURER OF CUTTING TOOLS SIMPLIFIES MANAGEMENT OF GLOBAL OPERATIONS

Dellas wanted to simplify its global business, provide a better experience to customers and resellers, and fully embrace lean business practices in all aspects of the operation.

Business Challenge Solution Results/

BenefitsWith help from MHT, Dellas implemented Microsoft Dynamics AX 2012 as an upgrade to the previous version of the solution.

Simplify the work environment

Enhance customer and reseller engagement

Streamline global business

Manage a lean operation

Boost executive insight and control

View the Case Study

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THE WÜRTH GROUP (OPERATIONS 2.0)

“With Microsoft Dynamics AX, we can integrate new businesses into the Group practically at the touch of a button. Industry-specific characteristics can be easily implemented.”

- Bernd Herrmann, Managing Director, Würth

• 400 subsidiaries in 84 countries; multi-industry and LOB operations

• Diverse languages, currencies, legislative requirements

• Inefficient processing for high-volume orders

• Lacked visibility into global operations

Challenge• Deployed Microsoft

Dynamics AX as the operational ERP

• Internal IT developed WürthPhoenix Trade+ for template-based, industry-specific deployments

• Integrated Microsoft Dynamics AX with Administrative ERP

Solution• One system meets

needs for 60+ locations

• Optimizes IT resources and costs with reusable implementations

• Order processing workload reduced by 50 percent

• Global visibility at both local sites and central administration

Results

Why 2.0: Diverse Manufacturing Operations, Geography, Size

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DYNAMICS PROCESS CUSTOMERS

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Cayman Chemical is an international manufacturer and distributor of high quality biochemical research products and has grown from a fledgling company of 1 employee in a small laboratory space to a spacious 14 acre research and production campus. Steady growth has allowed Cayman to expand its Production, R&D, chemistry and cGMP manufacturing capabilities. Today Cayman is comprised of 250 employees in 4 countries with a catalog of over 2,500 different biochemicals to over 4,000 customers worldwide.

Cayman Replaces Legacy Oracle Application

Outgrew aging, legacy Oracle ERP application and needed true integration throughout its operationsBetter manage inventory, sales process, manufacturing and supply chain and accommodate growth

Implemented Microsoft Dynamics AX with Process IndustriesSeamlessly connect operations using industry standard tools and the look and feel of everyday Microsoft products

Manages complex sales processes and growth overseasBetter understanding of customers and meeting them with accurate, timely informationMore user friendly system

Link to Cayman Chemical webcast

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Focused on manufacturing marine paints, protective coatings, container coatings, decorative paints and yacht paints.The first Hempel factory started production in 1915 in Denmark. Is now a world-wide enterprise comprised of two main and four regional research and development facilities, 20 manufacturing plants, 47 sales offices and more than 130 stock points strategically located around world. Hempel ensures prompt delivery of freshly produced quality coatings supported by Hempel's world-renowned service.

Hempel Chooses Microsoft Dynamics AX After Failed SAP and Epicor Implementations

Needed solution to support “One Hempel Everywhere”, with all units connected through stock visibility, intercompany sales, better managed inventory, sales processes, manufacturing and supply chainReplace failed SAP and Epicor Scala implementations

Selected Microsoft Dynamics AX with Process IndustriesSeamlessly connect operations using industry standard tools and the look and feel of everyday Microsoft products

• Standardization and alignment of business processes and procedures • Efficiency gains in production - strong supply chain functionality, such as MRP planning, Production planning, product costing, stock visibility and inventory management

Link to Hempel Press Release

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Jazz Sets an Example for Life Sciences Companies

•Aggressive Growth Strategy•Replace Disparate Systems •Replace Manual Planning and Scheduling Capabilities•SOX, Security, Data Integrity, Electronic Signature and transaction level audit and controls critical•Agility – Require ability to quickly add new companies, train new employees, add new product lines

•Evaluated Oracle, Ross, and Dynamics AX•Top 5 evaluation criteria were: Functional Fit, FDA Compliance / Industry Experience, Technology / Scalability, Supply Chain Integration with out-sourcing partners, Solution Cost •Required a rapid 3-month implementation to precede IPO

•Integrated solution•Ability to track lots through outsourced production process•Managing lot quality data, expiry dates, and inventory disposition•More accurate production planning to meet demand•Simplified the management of inventory, consignment, and order fulfillment

Specialty pharmaceutical company focused on treatments for neurological and psychiatric disorders. Jazz utilizes a combination of licensing/acquisition and in-house development of novel formulations and drug delivery technologies, and a production outsourcing strategy using contract manufacturers. Publicly held company, Public IPO, May 31, 2007, NASDAQ Exchange: JAZZ

Link to Jazz Pharmaceutical webcast

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Suterra Rolls out AX with Process Industries in Four Countries at the Same Time

•Growth through acquisition required a data model and business processes that could be easily rolled out across multiple locations•Global integration and reporting key

•Required a set 6-month implementation schedule•Selected Microsoft Dynamics AX with Process Industries over Oracle

•Integrated solution•Went live in 4 different countries at the same time: Wales, US, Mexico and Spain• Wales and the US started transactions within 1 hour of each other despite an 8 hour time difference

A division of $2B Roll International, Suterra is dedicated to providing an unmatched range of scientifically proven pheromone traps and lures - over 100 lures and the most extensive pheromone selections available. Suterra’s technical team is committed to helping maximize product performance…from pheromone placement to mid-season evaluations to monitoring insect pressure and tracking insect flights. Suterra has been committed to developing environmentally sound pest control products since its inception.

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CHEMICAL MANUFACTURER SUCCESSFULLY IMPLEMENTS ERP SOLUTION, GAINS BETTER INSIGHT TO PROCESSES AND INVENTORIES

DECISION CASE STUDY

Company Overview Why Microsoft Dynamics Goals

View the Case Study

The company opted for Microsoft Dynamics AX, which already ran successfully in seven companies in the Spolchemie Group.

Adjust the prices of its products to keep the desired margin and minimize the risk of selling below cost

Eliminate the risk that production might halt due to lack of certain input materials.

In 2007 Spolchemie was looking for a new, comprehensive enterprise information system. The solution it chose ultimately failed integration tests.

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“Amalie Oil is doubling in size every six years and we have only had to increase our workforce by 25 percent. We would have been unable to effectively scale to that level of growth without Microsoft Dynamics AX.”

Gianni Barkett, Chief Technology Officer, Amalie Oil Company

OIL MANUFACTURER IMPROVES DECISION MAKING AND OPERATIONS WITH NEW ERP SOLUTION

Amalie Oil Company relied on an aging enterprise resource planning system with high support costs and an uncertain future.

Business Challenge Solution Results/

Benefits

The company worked with Blue Horseshoe Solutions and implemented Microsoft Dynamics AX.

Improve business insight and reporting

Enhance manufacturing and Mfg.

Cut IT costs, speed development

Support growth

View the Case Study

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“With Microsoft Dynamics AX, we will realize huge gains at each of our companies individually and from a consolidated standpoint. The wins will be obvious and very drastic.”

Sharon Zimmer, Corporate Vice President, Systems and Technology,

Kent Watersports

WATERSPORTS COMPANIES BET THEIR FUTURE ON ERP SYSTEM AND POWERFUL TECHNOLOGY PROVIDER

Kent Watersports wanted to streamline business operations and provide greater executive insight and control across all six companies within the Kent Watersports family.

Business Challenge Solution Results/

Benefits

View the Case Study

The company deployed Microsoft Dynamics AX as the centralized ERP system for all companies.

Simplify technology management, reduce cost of technology ownership

Introduce agility and efficiency into business operations

Make key relationships more productive

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Thank You

Gilbert [email protected]

Mobile: 802-258-1226Office: 843-757-5626